Well, you always want to have some sort of collateral, in the form of at least 1.1x the loan value in some altcoin that is traded and stable. Something that you can, if the borrower disappears or fails to pay, can convert to bitcoin to recoup your losses. Something like Litecoin or peercoin is best, don't go for random crapcoins that popped up recently.
Documentation isn't going to help you. Say they run off. How would smearing them guarantee you getting your money back? Same with paypal/anything reversible. They will likely try to reverse it in the end.
wow so risky to give them loans like that...the higher the risk the higher the profit for me as a lender should be (in theory)
The problem with altcoins is that in reality you are not lending them money you are just doing a exchange service for them.
i would need from them some sort of audio,video,ebook,script file that generates money and i give them only half of what it is worth .Anybody tried it like that ?